Pistachios Grown in California, Arizona, and New Mexico; Decreased Assessment Rate, 63679-63682 [2016-22248]
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Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Rules and Regulations
The Board’s meeting was widely
publicized throughout the tart cherry
industry and all interested persons were
invited to attend and participate in
Board deliberations on all issues. Like
all Board meetings, the June 25, 2015,
meeting was a public meeting and all
entities, both large and small, were able
to express views on these issues.
A proposed rule concerning this
action was published in the Federal
Register on June 15, 2016 (81 FR 38975).
Copies of the rule were mailed or sent
via facsimile to all Board members and
tart cherry handlers. Finally, the rule
was made available through the internet
by USDA and the Office of the Federal
Register. A 30-day comment period
ending July 15, 2016, was provided to
allow interested persons to respond to
the proposal.
One comment was received during
the comment period in response to the
proposal. The commenter is an
individual who supports the proposed
action. The commenter described the
proposed changes as positive for the
industry. Accordingly, no changes will
be made to the rule as proposed, based
on the comment received.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Richard Lower
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
matter presented, including the
information and recommendation
submitted by the Board and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
It is further found that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register (5
U.S.C. 553) because handlers are already
putting cherries into reserve. This action
also needs to be in place before the
Board meets in September to discuss
establishing volume control, including
determining an appropriate carry-out
figure. Further, handlers are aware of
this rule, which was recommended at a
public meeting. Also, a 30-day comment
period was provided for in the proposed
rule.
For the reasons set forth in the
preamble, 7 CFR part 930 is amended as
follows:
DEPARTMENT OF AGRICULTURE
PART 930—TART CHERRIES GROWN
IN THE STATES OF MICHIGAN, NEW
YORK, PENNSYLVANIA, OREGON,
UTAH, WASHINGTON, AND
WISCONSIN
7 CFR Part 983
1. The authority citation for 7 CFR
part 930 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. In § 930.151:
a. Designate the current paragraph as
paragraph (a); and
■ b. Add a new paragraph (b) to read as
follows:
■
§ 930.151
Desirable carry-out inventory.
(a) * * *
(b) Beginning with the crop year
starting July 1, 2016, for the purposes of
determining an optimum supply
volume, the Board may recommend a
desirable carry-out inventory not to
exceed 100 million pounds.
3. Section 930.154 is added to read as
follows:
■
§ 930.154
cherries.
Release of inventory reserve
(a) As provided in § 930.54, the Board
may recommend a release of a portion
or all of the primary and/or secondary
reserve cherries. The total available
reserves will be determined at the
beginning of the crop year. The primary
reserve as defined in §§ 930.55 and
930.150 must be depleted before the
secondary reserve can be released. If a
release is recommended, the
recommended volume shall be
apportioned to handlers on the basis of
each handler’s proportion of the total
volume handled in the preceding three
crop years.
(b) If a handler has less volume in
reserve than is apportioned, the excess
volume shall be reapportioned to those
who still have volume in reserve until
the total release is complete.
Dated: September 12, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2016–22258 Filed 9–15–16; 8:45 am]
BILLING CODE 3410–02–P
Marketing agreements, Reporting and
recordkeeping requirements, Tart
cherries.
13:04 Sep 15, 2016
Jkt 238001
Agricultural Marketing Service
[Docket No. AMS–SC–16–0076 SC16–983–
2 IR]
Pistachios Grown in California,
Arizona, and New Mexico; Decreased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
■
List of Subjects in 7 CFR Part 930
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63679
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This rule implements a
recommendation from the
Administrative Committee for
Pistachios (Committee) for a decrease in
the assessment rate established for the
2016–17 and subsequent production
years from $0.0035 to $0.0010 per
pound of assessed weight pistachios
handled under the marketing order
(order). The Committee locally
administers the order and is comprised
of producers and handlers of pistachios
operating within the area of production.
Assessments upon pistachio handlers
are used by the Committee to fund
reasonable and necessary expenses of
the program. The production year
begins September 1 and ends August 31.
The assessment rate will remain in
effect indefinitely unless modified,
suspended, or terminated.
DATES: Effective September 19, 2016;
Comments received by November 15,
2016 will be considered prior to
issuance of a final rule.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule. Comments must be
sent to the Docket Clerk, Marketing
Order and Agreement Division,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW., STOP
0237, Washington, DC 20250–0237; Fax:
(202) 720–8938; or Internet: https://
www.regulations.gov. Comments should
reference the docket number and the
date and page number of this issue of
the Federal Register and will be
available for public inspection in the
Office of the Docket Clerk during regular
business hours, or can be viewed at:
https://www.regulations.gov. All
comments submitted in response to this
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Peter R. Sommers, Marketing Specialist,
SUMMARY:
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Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Rules and Regulations
or Jeffrey Smutny, Regional Director,
California Marketing Field Office,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (559) 487–
5901, Fax: (559) 487–5906, or Email:
PeterR.Sommers@ams.usda.gov or
Jeffrey.Smutny@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Richard.Lower@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Agreement
and Order No. 983, both as amended (7
CFR part 983), regulating the handling
of pistachios grown in California,
Arizona, and New Mexico, hereinafter
referred to as the ‘‘order.’’ The order is
effective under the Agricultural
Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601–674), hereinafter
referred to as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Orders
12866, 13563, and 13175.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the marketing order now
in effect, California, Arizona, and New
Mexico pistachio handlers are subject to
assessments. Funds to administer the
order are derived from such
assessments. It is intended that the
assessment rate as issued herein will be
applicable to all assessable pistachios
beginning September 1, 2016, and
continue until amended, suspended, or
terminated.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. Such
handler is afforded the opportunity for
a hearing on the petition. After the
hearing, USDA would rule on the
petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has his or her principal
place of business, has jurisdiction to
review USDA’s ruling on the petition,
provided an action is filed not later than
20 days after the date of the entry of the
ruling.
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This rule decreases the assessment
rate for the 2016–17 and subsequent
production years from $0.0035 to
$0.0010 per pound of assessed weight
pistachios.
The California, Arizona, and New
Mexico pistachio order provides
authority for the Committee, with the
approval of USDA, to formulate an
annual budget of expenses and collect
assessments from handlers to administer
the program. The members of the
Committee are producers and handlers
of California, Arizona, and New Mexico
pistachios. They are familiar with the
Committee’s needs and with the costs
for goods and services in their local area
and are thus in a position to formulate
an appropriate budget and assessment
rate. The assessment rate is formulated
and discussed in a public meeting.
Thus, all directly affected persons have
an opportunity to participate and
provide input.
For the 2015–16 and subsequent
production years, the Committee
recommended and USDA approved an
assessment rate that would continue in
effect from production year to
production year unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
information available to USDA.
The Committee met on July 12, 2016,
and unanimously recommended 2016–
17 expenditures of $922,500, and an
assessment rate of $0.0010 per pound of
assessed weight pistachios. In
comparison, last year’s budgeted
expenditures were $1,056,402, and the
assessment rate was $0.0035 per pound
of pistachios. The assessment rate of
$0.0010 is $0.0025 lower than the rate
currently in effect.
The major expenditures
recommended by the Committee for the
2016–17 production year include
$333,000 for salaries and benefits,
$250,000 for research, and $19,500 for
general and administrative expenses.
Budgeted expenses for these items in
the 2015–16 production year were
$316,500, $560,000, and $19,500,
respectively.
The assessment rate recommended by
the Committee was derived by dividing
anticipated expenses by expected
shipments of California, Arizona, and
New Mexico pistachios. Pistachio
shipments for the production year are
estimated at 750 million pounds which
should provide $750,000 in assessment
income. Income derived from handler
assessments, along with interest income
and funds from the Committee’s
authorized reserve, will be adequate to
cover budgeted expenses. Funds in the
reserve will be kept within the
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maximum limit permitted by the order,
which is two production years’
budgeted expenses.
The assessment rate established in
this rule will continue in effect
indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
available information.
Although this assessment rate is
effective for an indefinite period, the
Committee will continue to meet prior
to or during each production year to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Committee meetings
are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA will evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking will be
undertaken as necessary. The
Committee’s 2016–17 production year
budget and those for subsequent
production years will be reviewed and,
as appropriate, approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
rule on small entities. Accordingly,
AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 1,152
producers of pistachios in the
production area and 19 handlers subject
to regulation under the marketing order.
The Small Business Administration
defines small agricultural producers as
those having annual receipts less than
$750,000, and small agricultural service
firms as those whose annual receipts are
less than $7,500,000. (13 CFR 121.201)
Based on Committee data, it is
estimated that about 53 percent of the
handlers annually ship less than
$7,500,000 worth of pistachios, and it is
also estimated that 68 percent of the
producers have annual receipts less
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than $750,000. Thus, the majority of
handlers in the production area and
more than two-thirds of the producers
may be classified as small entities.
This rule decreases the assessment
rate collected from handlers for the
2016–17 and subsequent production
years from $0.0035 to $0.0010 per
pound of pistachios handled. The
Committee unanimously recommended
2016–17 expenditures of $922,500 and
an assessment rate of $0.0010 per pound
of assessed weight pistachios, which is
$0.0025 lower than the 2015–16 rate
currently in effect. The quantity of
assessable pistachios for the 2016–17
production year is estimated at 750
million pounds. Thus, the $0.0010 rate
should provide $750,000 in assessment
income. Income derived from handler’s
assessments, along with interest and
funds from the Committee’s authorized
reserve, should be adequate to cover
expenses for the 2016–17 production
year.
The major expenditures
recommended by the Committee for the
2016–17 production year include
$333,000 for salaries and benefits,
$250,000 for research, and $19,500 for
general and administrative expenses.
Budgeted expenses for these items in
the 2015–16 production year were
$316,500, $560,000, and $19,500,
respectively.
The assessment rate decrease is
necessary to reduce expected income
from an assessment rate set at $0.0035
per pound. The income from that
assessment rate would result in the
Committee’s financial reserve being
higher than is permitted under the
order. The $0.0035 rate was established
to provide sufficient income when the
crop was expected to be approximately
half of a normal crop. For these reasons,
the Committee unanimously voted to
decrease the assessment rate from
$0.0035 to $0.0010. The income
generated from the lower recommended
rate combined with funds from the
financial reserve should provide
sufficient income to cover anticipated
2016–17 expenses and maintain the
financial reserve within the limit
specified under the marketing order.
Prior to arriving at this budget and
assessment rate, the Committee
considered information from various
sources. Alternative expenditure levels
were discussed, based upon the relative
value of various activities to the
pistachio industry. The Committee
ultimately determined that the 2016–17
production year expenses of $922,500
were prudent, and the assessment
income provided by the reduced rate
and funds from the financial reserve
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would permit the committee to meet its
expenses.
According to data from the National
Agricultural Statistics Service, the
season average producer price was $3.57
per pound of assessed weight pistachios
in 2014 and $2.48 per pound in 2015.
A review of historical and preliminary
information pertaining to the upcoming
production year indicates that the
producer revenue for the 2016–17
production year could range between
$1,860,000,000 and $2,677,500,000.
Therefore, the estimated assessment
revenue for the 2016–17 production
year as a percentage of total producer
revenue could range between 0.0004
and 0.00028 percent.
This action decreases the assessment
obligation imposed on handlers.
Assessments are applied uniformly on
all handlers, and some of the costs may
be passed on to producers. However,
decreasing the assessment rate reduces
the burden on handlers, and may reduce
the burden on producers. In addition,
the Committee meeting was widely
publicized throughout the California,
Arizona, and New Mexico pistachio
industry, and all interested persons
were invited to attend the meetings and
encouraged to participate in Committee
deliberations on all issues.
Like all Committee meetings, the July
12, 2016, meeting was a public meeting
and all entities, both large and small,
were able to express views on this issue.
Industry members also discussed
various assessment rates, potential crop
size, and estimated expenses at this
meeting. Finally, interested persons are
invited to submit comments on this
interim rule, including the regulatory
and informational impacts of this action
on small businesses.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0215,
‘‘Vegetable and Specialty Crop
Marketing Orders.’’ No changes in those
requirements as a result of this action
are necessary. Should any changes
become necessary, they would be
submitted to OMB for approval.
This action imposes no additional
reporting or recordkeeping requirements
on either small or large California,
Arizona, and New Mexico pistachio
handlers. As with all Federal marketing
order programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies.
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63681
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies, to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Richard Lower
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect, and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The 2016–17 production
year begins on September 1, 2016, and
the order requires that the rate of
assessment for each production year
apply to all assessable pistachios
handled during such production year;
(2) the action decreases the assessment
rate for assessable pistachios beginning
with the 2016–17 production year; (3)
handlers are aware of this action which
was unanimously recommended by the
Committee at a public meeting and is
similar to other assessment rate actions
issued in past years; and (4) this interim
rule provides a 60-day comment period,
and all comments timely received will
be considered prior to finalization of
this rule.
List of Subjects in 7 CFR Part 983
Pistachios, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 983 is amended as
follows:
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III. Policy Statement
IV. Administrative Law Matters
A. Use of Plain Language
B. Paperwork Reduction Act Analysis
C. Regulatory Flexibility Act Analysis
PART 983—PISTACHIOS GROWN IN
CALIFORNIA, ARIZONA, AND NEW
MEXICO
1. The authority citation for 7 CFR
part 983 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 983.253 is revised to read
as follows:
■
§ 983.253
Assessment rate.
On and after September 1, 2016, an
assessment rate of $0.0010 per pound is
established for California, Arizona, and
New Mexico pistachios.
Dated: September 12, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2016–22248 Filed 9–15–16; 8:45 am]
BILLING CODE P
FEDERAL RESERVE SYSTEM
12 CFR Part 217
[Docket No. R–1529; RIN 7100 AE–43]
Regulatory Capital Rules: The Federal
Reserve Board’s Framework for
Implementing the U.S. Basel III
Countercyclical Capital Buffer
Board of Governors of the
Federal Reserve System.
ACTION: Final policy statement.
AGENCY:
The Board of Governors of the
Federal Reserve System (Board) is
adopting a final policy statement (Policy
Statement) describing the framework
that the Board will follow under its
Regulation Q in setting the amount of
the U.S. countercyclical capital buffer
for advanced approaches bank holding
companies, savings and loan holding
companies, and state member banks.
DATES: The Policy Statement is effective
October 14, 2016.
FOR FURTHER INFORMATION CONTACT:
William Bassett, Deputy Associate
Director, (202) 736–5644, or Rochelle
Edge, Deputy Associate Director, (202)
452–2339, Division of Financial
Stability; Sean Campbell, Associate
Director, (202) 452–3760, Division of
Banking Supervision and Regulation;
Benjamin W. McDonough, Special
Counsel, (202) 452–2036, Mark Buresh,
Senior Attorney, (202) 452–5270, or
Mary Watkins, Attorney, (202) 452–
3722, Legal Division.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
Table of Contents
I. Background
II. Summary of Comments on the Proposal
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I. Background
In December 2015, the Board invited
public comment on a proposed policy
statement describing the framework that
the Board would use to set the amount
of the U.S. countercyclical capital buffer
(CCyB) under the Board’s capital rules
(Regulation Q).1 The CCyB is a
macroprudential policy tool that the
Board can increase during periods of
rising vulnerabilities in the financial
system and reduce when vulnerabilities
recede or when the release of the CCyB
would promote financial stability.2 The
CCyB supplements the minimum capital
requirements and other capital buffers
included in Regulation Q, which
themselves are designed to provide
substantial resilience to unexpected
losses created by normal fluctuations in
economic and financial conditions.
The proposed policy statement
outlined the factors the Board would
consider in setting the level of the
CCyB, and the indicators it would
monitor to help determine whether an
adjustment to the CCyB is appropriate.
The proposed policy statement also
described the effects the Board will
monitor in determining whether the
CCyB is achieving the desired purposes
of the CCyB.
The Board received two comments on
the proposed policy statement.
Commenters raised concerns about the
process that the Board would follow in
setting the CCyB pursuant to the policy
statement, the potential economic
impact of the CCyB, and the efficacy
and appropriateness of the CCyB as a
policy tool. Commenters also made
various specific suggestions as to the
indicators and standards that the Board
should consider in determining whether
to activate the CCyB.
After reviewing comments, the Board
is revising the final Policy Statement to
clarify the following key items: (1) That
the Board expects that the CCyB will be
activated when systemic vulnerabilities
are meaningfully above normal and that
1 12 CFR part 217. See also 81 FR 5661 (February
3, 2016).
2 See 12 CFR 217.11(b). Implementation of the
CCyB also helps respond to the provision in the
Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act) that the agencies
‘‘shall seek to make such [capital] requirements
countercyclical, so that the amount of capital
required to be maintained by a company increases
in times of economic expansion and decreases in
times of economic contraction, consistent with the
safety and soundness of the company.’’ See 12
U.S.C. 1467a; 12 U.S.C. 1844; 12 U.S.C. 3907 (as
amended by section 616 of the Dodd-Frank Act).
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the Board generally intends to increase
the CCyB gradually, (2) that the Board
expects to remove or reduce the CCyB
when the conditions that led to its
activation abate or lessen and when the
release of CCyB capital would promote
financial stability. The discussion in
Sections II and IV below responds to
comments on the proposal regarding the
Board’s process for setting the CCyB. In
particular, as indicated below, the Board
would seek comment on any proposed
change to the CCyB amount and include
a discussion of the reasons for the
change.
II. Purpose of CCyB
The CCyB is designed to increase the
resilience of large banking organizations
when the Board sees an elevated risk of
above-normal losses. Increasing the
resilience of large banking organizations
should, in turn, improve the resilience
of the broader financial system. Abovenormal losses often follow periods of
rapid asset price appreciation or credit
growth that are not well supported by
underlying economic fundamentals. As
stated in the proposed policy statement,
the circumstances in which the Board
would most likely use the CCyB as a
supplemental, macroprudential tool to
augment minimum capital requirements
and other capital buffers would be to
address circumstances when systemic
vulnerabilities are somewhat above
normal. By requiring institutions to hold
a larger capital buffer during periods
when systemic risk is increasing and
reducing the buffer requirement as
vulnerabilities diminish, the CCyB also
has the potential to moderate
fluctuations in the supply of credit over
time.
The CCyB functions as an expansion
of the Capital Conservation Buffer
(CCB), which is applicable to all
banking organizations subject to
Regulation Q. To avoid limits on capital
distributions and certain discretionary
bonus payments,3 the CCB requires that
a banking organization hold a buffer of
common equity tier 1 capital that is at
least 2.5 percent of the risk-weighted
assets in addition to the minimum riskbased capital ratios. The CCB is divided
into quartiles, each associated with
increasingly stringent limitations on
capital distributions and certain
discretionary bonus payments as the
firm’s risk-based capital ratios approach
regulatory minimums.4 The CCyB is an
additional, countercyclical buffer that
has the same limitations on dividends
and capital distributions as the CCB.
3 12
4 12
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CFR 217.11(b)(1)(i).
CFR 217.11(a).
16SER1
]]>Agencies
[Federal Register Volume 81, Number 180 (Friday, September 16, 2016)]
[Rules and Regulations]
[Pages 63679-63682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22248]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 983
[Docket No. AMS-SC-16-0076 SC16-983-2 IR]
Pistachios Grown in California, Arizona, and New Mexico;
Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This rule implements a recommendation from the Administrative
Committee for Pistachios (Committee) for a decrease in the assessment
rate established for the 2016-17 and subsequent production years from
$0.0035 to $0.0010 per pound of assessed weight pistachios handled
under the marketing order (order). The Committee locally administers
the order and is comprised of producers and handlers of pistachios
operating within the area of production. Assessments upon pistachio
handlers are used by the Committee to fund reasonable and necessary
expenses of the program. The production year begins September 1 and
ends August 31. The assessment rate will remain in effect indefinitely
unless modified, suspended, or terminated.
DATES: Effective September 19, 2016; Comments received by November 15,
2016 will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order and Agreement Division, Specialty Crops Program, AMS,
USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or Internet: https://www.regulations.gov.
Comments should reference the docket number and the date and page
number of this issue of the Federal Register and will be available for
public inspection in the Office of the Docket Clerk during regular
business hours, or can be viewed at: https://www.regulations.gov. All
comments submitted in response to this rule will be included in the
record and will be made available to the public. Please be advised that
the identity of the individuals or entities submitting comments will be
made public on the Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Peter R. Sommers, Marketing
Specialist,
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or Jeffrey Smutny, Regional Director, California Marketing Field
Office, Marketing Order and Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or
Email: PeterR.Sommers@ams.usda.gov or Jeffrey.Smutny@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Marketing Order and Agreement
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491,
Fax: (202) 720-8938, or Email: Richard.Lower@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 983, both as amended (7 CFR part 983),
regulating the handling of pistachios grown in California, Arizona, and
New Mexico, hereinafter referred to as the ``order.'' The order is
effective under the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Orders 12866, 13563, and 13175.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing order now in effect, California,
Arizona, and New Mexico pistachio handlers are subject to assessments.
Funds to administer the order are derived from such assessments. It is
intended that the assessment rate as issued herein will be applicable
to all assessable pistachios beginning September 1, 2016, and continue
until amended, suspended, or terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule decreases the assessment rate for the 2016-17 and
subsequent production years from $0.0035 to $0.0010 per pound of
assessed weight pistachios.
The California, Arizona, and New Mexico pistachio order provides
authority for the Committee, with the approval of USDA, to formulate an
annual budget of expenses and collect assessments from handlers to
administer the program. The members of the Committee are producers and
handlers of California, Arizona, and New Mexico pistachios. They are
familiar with the Committee's needs and with the costs for goods and
services in their local area and are thus in a position to formulate an
appropriate budget and assessment rate. The assessment rate is
formulated and discussed in a public meeting. Thus, all directly
affected persons have an opportunity to participate and provide input.
For the 2015-16 and subsequent production years, the Committee
recommended and USDA approved an assessment rate that would continue in
effect from production year to production year unless modified,
suspended, or terminated by USDA upon recommendation and information
submitted by the Committee or other information available to USDA.
The Committee met on July 12, 2016, and unanimously recommended
2016-17 expenditures of $922,500, and an assessment rate of $0.0010 per
pound of assessed weight pistachios. In comparison, last year's
budgeted expenditures were $1,056,402, and the assessment rate was
$0.0035 per pound of pistachios. The assessment rate of $0.0010 is
$0.0025 lower than the rate currently in effect.
The major expenditures recommended by the Committee for the 2016-17
production year include $333,000 for salaries and benefits, $250,000
for research, and $19,500 for general and administrative expenses.
Budgeted expenses for these items in the 2015-16 production year were
$316,500, $560,000, and $19,500, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of California,
Arizona, and New Mexico pistachios. Pistachio shipments for the
production year are estimated at 750 million pounds which should
provide $750,000 in assessment income. Income derived from handler
assessments, along with interest income and funds from the Committee's
authorized reserve, will be adequate to cover budgeted expenses. Funds
in the reserve will be kept within the maximum limit permitted by the
order, which is two production years' budgeted expenses.
The assessment rate established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by USDA
upon recommendation and information submitted by the Committee or other
available information.
Although this assessment rate is effective for an indefinite
period, the Committee will continue to meet prior to or during each
production year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA will evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The Committee's 2016-17 production year
budget and those for subsequent production years will be reviewed and,
as appropriate, approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this rule on small entities.
Accordingly, AMS has prepared this initial regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 1,152 producers of pistachios in the
production area and 19 handlers subject to regulation under the
marketing order. The Small Business Administration defines small
agricultural producers as those having annual receipts less than
$750,000, and small agricultural service firms as those whose annual
receipts are less than $7,500,000. (13 CFR 121.201)
Based on Committee data, it is estimated that about 53 percent of
the handlers annually ship less than $7,500,000 worth of pistachios,
and it is also estimated that 68 percent of the producers have annual
receipts less
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than $750,000. Thus, the majority of handlers in the production area
and more than two-thirds of the producers may be classified as small
entities.
This rule decreases the assessment rate collected from handlers for
the 2016-17 and subsequent production years from $0.0035 to $0.0010 per
pound of pistachios handled. The Committee unanimously recommended
2016-17 expenditures of $922,500 and an assessment rate of $0.0010 per
pound of assessed weight pistachios, which is $0.0025 lower than the
2015-16 rate currently in effect. The quantity of assessable pistachios
for the 2016-17 production year is estimated at 750 million pounds.
Thus, the $0.0010 rate should provide $750,000 in assessment income.
Income derived from handler's assessments, along with interest and
funds from the Committee's authorized reserve, should be adequate to
cover expenses for the 2016-17 production year.
The major expenditures recommended by the Committee for the 2016-17
production year include $333,000 for salaries and benefits, $250,000
for research, and $19,500 for general and administrative expenses.
Budgeted expenses for these items in the 2015-16 production year were
$316,500, $560,000, and $19,500, respectively.
The assessment rate decrease is necessary to reduce expected income
from an assessment rate set at $0.0035 per pound. The income from that
assessment rate would result in the Committee's financial reserve being
higher than is permitted under the order. The $0.0035 rate was
established to provide sufficient income when the crop was expected to
be approximately half of a normal crop. For these reasons, the
Committee unanimously voted to decrease the assessment rate from
$0.0035 to $0.0010. The income generated from the lower recommended
rate combined with funds from the financial reserve should provide
sufficient income to cover anticipated 2016-17 expenses and maintain
the financial reserve within the limit specified under the marketing
order.
Prior to arriving at this budget and assessment rate, the Committee
considered information from various sources. Alternative expenditure
levels were discussed, based upon the relative value of various
activities to the pistachio industry. The Committee ultimately
determined that the 2016-17 production year expenses of $922,500 were
prudent, and the assessment income provided by the reduced rate and
funds from the financial reserve would permit the committee to meet its
expenses.
According to data from the National Agricultural Statistics
Service, the season average producer price was $3.57 per pound of
assessed weight pistachios in 2014 and $2.48 per pound in 2015. A
review of historical and preliminary information pertaining to the
upcoming production year indicates that the producer revenue for the
2016-17 production year could range between $1,860,000,000 and
$2,677,500,000. Therefore, the estimated assessment revenue for the
2016-17 production year as a percentage of total producer revenue could
range between 0.0004 and 0.00028 percent.
This action decreases the assessment obligation imposed on
handlers. Assessments are applied uniformly on all handlers, and some
of the costs may be passed on to producers. However, decreasing the
assessment rate reduces the burden on handlers, and may reduce the
burden on producers. In addition, the Committee meeting was widely
publicized throughout the California, Arizona, and New Mexico pistachio
industry, and all interested persons were invited to attend the
meetings and encouraged to participate in Committee deliberations on
all issues.
Like all Committee meetings, the July 12, 2016, meeting was a
public meeting and all entities, both large and small, were able to
express views on this issue. Industry members also discussed various
assessment rates, potential crop size, and estimated expenses at this
meeting. Finally, interested persons are invited to submit comments on
this interim rule, including the regulatory and informational impacts
of this action on small businesses.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0215, ``Vegetable and Specialty Crop Marketing
Orders.'' No changes in those requirements as a result of this action
are necessary. Should any changes become necessary, they would be
submitted to OMB for approval.
This action imposes no additional reporting or recordkeeping
requirements on either small or large California, Arizona, and New
Mexico pistachio handlers. As with all Federal marketing order
programs, reports and forms are periodically reviewed to reduce
information requirements and duplication by industry and public sector
agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies, to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions
about the compliance guide should be sent to Richard Lower at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and that good cause exists for not postponing the effective
date of this rule until 30 days after publication in the Federal
Register because: (1) The 2016-17 production year begins on September
1, 2016, and the order requires that the rate of assessment for each
production year apply to all assessable pistachios handled during such
production year; (2) the action decreases the assessment rate for
assessable pistachios beginning with the 2016-17 production year; (3)
handlers are aware of this action which was unanimously recommended by
the Committee at a public meeting and is similar to other assessment
rate actions issued in past years; and (4) this interim rule provides a
60-day comment period, and all comments timely received will be
considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 983
Pistachios, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 983 is
amended as follows:
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PART 983--PISTACHIOS GROWN IN CALIFORNIA, ARIZONA, AND NEW MEXICO
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1. The authority citation for 7 CFR part 983 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
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2. Section 983.253 is revised to read as follows:
Sec. 983.253 Assessment rate.
On and after September 1, 2016, an assessment rate of $0.0010 per
pound is established for California, Arizona, and New Mexico
pistachios.
Dated: September 12, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-22248 Filed 9-15-16; 8:45 am]
BILLING CODE P
